Energy

Now in its seventh edition, Economics of the Environment serves as a valuable supplement to environmental economics text books and as a stand-alone reference book of key, up-to-date readings from the field. Edited by Robert N. Stavins, the book covers the core areas of environmental economics courses as taught around the world; and the included authors are the top scholars in the field. Overall, more than half of the chapters are new to this edition while the rest have remained seminal works.

Harvard Project on Climate Agreements Director Robert N. Stavins delivered a presentation titled "Climate Change: Efficiency and Equity," at The Graduate Institute in Geneva, Switzerland, on November 29, 2011. The talk was one in the Geneva Environmental Dialogue Series of public keynote lectures that the Institute holds annually on a theme related to the international environment. The theme for the 2011–2012 term is "Justice and the Environment."

The Spring 2011 issue of the Belfer Center newsletter features recent and upcoming activities, research, and analysis by members of the Center community on critical global issues. This issue highlights the Belfer Center’s continuing efforts to build bridges between the United States and Russia to prevent nuclear catastrophe – an effort that began in the 1950s. This issue also features three new books by Center faculty that sharpen global debate on critical issues: God’s Century, by Monica Duffy Toft, The New Harvest by Calestous Juma, and The Future of Power, by Joseph S. Nye.

A "deal" is proposed in this paper, whereby all major-emitting countries, including the United States and China, agree to reduce emissions through implementation of significant, mutually agreeable, domestic emission-reduction policies. To resolve the competitiveness and equity concerns, a proposed Carbon Mitigation Fund would be created. This proposed fund is contrasted with other existing and proposed mitigation funds and finance mechanisms. 

Sectoral approaches have been gaining currency in the international climate debate as a possible remedy to the shortfalls of the Kyoto Protocol. Proponents argue that a sector-based architecture can more easily invite the participation of developing countries, address competitiveness issues, and enable immediate emissions reductions. However, given the numerous proposals, much confusion remains as to what sectoral approaches actually are. This article provides a simple, yet comprehensive, taxonomy of the various proposals for sectoral approaches.

"...[T]he U.S. and China have been involved in intense talks about climate policy. If the two nations come together in a bilateral agreement—a real possibility—they would have much more leverage to persuade other major nations to join. From there, developing nations could be brought on board by giving them targets that reduce emissions without stifling growth. Advanced nations might agree to more-severe emissions cuts and allow developing nations to make gradual cuts in the early decades as they rise toward the world's average per-capita emissions. With the right incentives, developing countries can and will move onto less carbon-intensive growth paths."

"Because CAFE standards increase the price of new cars, the standards have the unintentional effect of keeping older — dirtier and less fuel-efficient — cars on the road longer. This is counterproductive.

Also, by decreasing the cost per mile of driving, CAFE standards — like any energy-efficiency technology standard — exhibit a rebound effect — namely, people have an incentive to drive more, not less, thereby lessening the anticipated reduction in gasoline usage."

Robert Stavins, Albert Pratt Professor of Business and Government at Harvard Kennedy School and a member of the Board of Directors at the school's Belfer Center, has been appointed to a new position in the Energy and Environmental Markets Advisory Committee at the U.S. Commodity Futures Trading Commission.